Amazon raises minimum pay for warehouse workers to $20/hour

Amazon raises minimum pay for warehouse workers to $20/hour Amazon raises minimum pay for warehouse workers to $20/hour · Quartz · Getty Images / Picture Alliance Cris Tolomia Thu, September 17, 2026 at 1:55 AM GMT+9 2 min read AMZN -0.39% Amazon raised minimum starting pay for its U.S. full-time core operations employees to $20 an hour on Wednesday, a $1-per-hour increase for front-line workers who sort, pack, and transport orders.

Amazon said the typical hourly rate for those workers climbs to nearly $24, and that when benefits are counted, total compensation comes out to more than $32 an hour. Amazon said its minimum starting pay has risen more than 17% over the past three years.

The announcement arrives as Amazon approaches the peak holiday shopping season. According to The Wall Street Journal, Amazon hired 250,000 full-time, part-time, and seasonal workers in advance of last year's holiday period.

Along with the pay increase, Amazon announced two new benefits. Beginning Oct. 1, all U.S. Amazon employees will receive a grocery discount — 10% off eligible groceries and everyday essentials on Amazon.com and Whole Foods Market online, and 20% off in-store at Whole Foods. The discount can be combined with existing Prime member discounts, the company said.

Amazon also said it is launching a banking benefit called Day 1 Financial, through which qualified employees and their families can obtain a lifelong membership in First Tech Federal Credit Union. The benefit includes accounts with no overdraft fees, no monthly maintenance fees, and no account minimums, as well as access to credit cards, auto loans, and home loans for those who qualify. The company said the rollout will start in late 2026, with broad availability expected in 2027.

The pay raise and new benefits come against a broader backdrop of scrutiny over Amazon's labor practices. New Jersey filed a federal antitrust lawsuit against Amazon alleging the company uses its dominance over its delivery contractor network to suppress driver wages and prevent workers from organizing. Amazon disputed those allegations, saying the complaint is "not grounded in fact."

For context on how Amazon's new minimum compares to competitors, Walmart's U.S. workers start at $14 an hour and Target's minimum is $15 an hour, according to Reuters. Costco raised its minimum wage for entry-level workers to $20 an hour last year.